Investment Strategies

Pursue Opportunities in an Expansive and Inefficient Asset Class

Big Pond — With more than 10,000 companies, small-/mid-cap stocks account for the vast majority of the global opportunity set.1

Few Fishermen — But they tend to be far less researched by the investment community, which can create opportunity to find undervalued companies others may miss.

Diversification Benefits — Encompassing companies that tend to cater more to domestic customers than their large-cap counterparts, global small cap stocks may provide attractive diversification benefits.

Employ an Active Value Approach to Pursue Opportunity

Experience — Brandes has been investing in global small caps since 1997.

Value Opportunities — Value stocks (i.e., those with low price-to-book ratios) have outperformed growth stocks (i.e., those with higher price-to-book ratios) among global small caps over the long term.2

Independent Point of View — Brandes Investment Partners is a 100% employee owned firm and its strategies are unhindered by sales quotas or any outside influence that may impede the firm’s pursuit of investment management excellence.

Past performance is not a guarantee of future results.

No investment strategy can assure a profit or protect against loss. Diversification does not assure a profit or protect against a loss in a declining market.

1Source: FactSet as of 6/30/2015; global small-/mid-cap defined as those companies with a market capitalization between $250mn and $5bn in market capitalization; Global large cap includes companies with a market capitalization greater than $5bn.

2Sources: Worldscope via FactSet, The Brandes Institute, as of 6/30/2014 “Value vs. Glamour: A Long-Term Worldwide Perspective,” using data from 1980 to 2014, the study showed that over the long term, based on price/book deciles, a value premium was evident across both large and small cap stocks in our Global Sample. The Global sample consisted of publicly traded companies domiciled in the United States and non-U.S. developed markets (excluding the smallest 50% of companies). We grouped the largest 30% of the companies in our sample in a large-cap segment and assigned the remaining 70% to a small-cap segment. Stocks were first divided into 10 deciles based on price-to-book. Aggregate performance of each decile was tracked over the next five years. This process was then repeated each year. Within the small-cap segment, decile 10 value stocks outperformed decile 1 glamour stocks by an average annualized rolling five-year return of 6.6%. Past performance is not a guarantee of future results.

International and emerging markets investing is subject to certain risks such as currency fluctuation and social and political changes, differences in financial reporting standards and less stringent regulation of securities markets which may result in greater share price volatility.

The S&P Developed SmallCap Index with net dividends measures equity performance of small cap companies in developed markets. Data prior to 2001 is gross dividend and linked to the net dividend returns.

Stocks of small companies usually experience more volatility than mid and large sized companies.

This material is intended for informational purposes only. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Portfolio holdings and allocations are subject to change at any time. Strategies discussed herein are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance.

The Brandes Global Small Cap Equity Strategy seeks long-term capital appreciation by investing primarily in equity securities of U.S. and non-U.S. issuers with equity market capitalizations of $2.5 billion or less at the time of purchase.

The strategy benchmark is the S&P Developed SmallCap Index.

In September 2016 the strategy benchmark changed from gross of withholding tax to net of withholding tax, effective back to the inception date of the strategy. For periods where the net dividend returns are not available gross benchmark returns are used and linked to the net benchmark returns. The change was made to better reflect our expectation for an investor’s actual experience.

The results for individual accounts and for different periods may vary. Investors should not rely on prior performance results as a reliable indication of future results. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance.

As of September 30, 2013, Brandes Investment Partners includes the non-SMA Division of Brandes Investment Partners L.P., Brandes Investment Partners (Europe) Limited, Brandes Investment Partners (Asia) Pte Ltd and the Brandes Investment Partners & Co. assets sub-advised by Brandes Investment Partners, L.P. The firm was redefined to reflect the expansion of the organization. As of January 1, 2006, Brandes Investment Partners was divided into two separate divisions: the SMA Division of Brandes Investment Partners, which acts as a discretionary manager to SMA or “wrap fee” program clients, including those who may invest in an SMA product; and the non-SMA Division of Brandes Investment Partners (Brandes), which acts as a discretionary manager for all other types of clients which may include pooled investment vehicles, institutional accounts and high net worth clients outside of wrap fee programs. Although the divisions may share portfolio management and other personnel, each division serves a particular target market, may trade in a different manner and may offer investment advice which differs from the other depending upon the individualized needs of the clients served. The performance data presented does not contain any SMA Division accounts.

The Brandes Global Small Cap Equity Composite seeks to achieve long-term capital appreciation by investing primarily in equity securities of U.S. and non-U.S. issuers with equity market capitalizations of $2.5 billion or less at the time of purchase. Generally, no more than 30% of the value of the composite’s total assets, measured at the time of purchase, may be invested in securities of companies located in emerging and frontier countries throughout the world. Small capitalization securities involve greater issuer risk than large capitalization securities, and the markets for such securities may be more volatile and less liquid.

(a) The S&P Developed SmallCap Index with net dividends measures the equity performance of small cap companies in developed markets. Data prior to 2001 is gross dividend and linked to the net dividend returns. The benchmark returns are not covered by the report of independent verifiers.

Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.